Sustainable supply chain management and organizational performance: the mediating role of competitive advantage in Ethiopian manufacturing industry

Purpose

This research aims to study the impact of sustainable supply chain management on both competitive advantage and organizational performance in the Ethiopian manufacturing industry.

Design/methodology/approach

The objectives are achieved through collecting and analyzing data from 221 Ethiopian manufacturing industries. This research employs a quantitative approach, specifically descriptive and causal research methods. The data are collected by questionnaires administered directly to a sample of 221 respondents who are managers and supervisors in the manufacturing industry. In addition, data analysis was performed using structural equation modeling in the Smart-PLS Software version (SmartPLS 4.0).

Findings

The research reveals that SSCM substantially and positively impacts competitive advantage and organizational performance. Furthermore, statistical findings prove the connection between competitive advantage and organizational performance. Moreover, competitive advantage indirectly influences the relationship between SSCM and OP. The results suggest that successfully implementing SSCM can improve competitive advantage and OP.

Originality/value

Considering the triple-bottom-line approach and the mediating effects of competitive advantage, this study is the first to analyze the relationship between SSCM and manufacturing performance in Ethiopia. This study adds to the existing literature by providing empirical evidence on the impact of sustainable supply chain management (SSCM) on competitive advantage and organizational performance in the manufacturing industry of emerging markets.

Research limitations/implications

The research is based on a cross-sectional study, which may prevent the generalization of findings derived from the current study. The analyzed variable in this study quantified OP, which is widely recognized as a very dynamic concept.